He was also a pioneer British motor car builder, a hobby he eventually turned into a successful car company, and is considered one of the "big three" English car engineers, the others being Harry Ricardo and Henry Royce.
When he completed his education in 1888, he took a job as a Patent Office draughtsman for £3 a week. About this time he took out a patent for an isometrograph, a draughtsman’s instrument for hatching, shading and other geometrical design work.
In 1919, at the age of fifty-one, Lanchester married Dorothea Cooper, the daughter of Thomas Cooper, the vicar of St Peter’s Church at Field Broughton in Lancashire. The couple moved to 41 Bedford Square, London, but in 1924 Lanchester built a house to his own design (Dyott End) in Oxford Road, Moseley. The couple remained there for the rest of their life together but had no children.
He was elected a Fellow of the Royal Society in 1922, and in 1926 the Royal Aeronautical Society awarded him a fellowship and a gold medal.
In 1925 Lanchester founded a company called Lanchester Laboratories Ltd. This was to carry out industrial research and development work. Although he developed an improved radio and gramophone speaker, he was unable to market it successfully because of the recession. He carried on, overworking, until in 1934 his health failed and the firm was forced to close. He was eventually diagnosed with Parkinson’s disease.
He was awarded gold medals by the Institution of Civil Engineers in 1941 and the Institution of Mechanical Engineers in 1945.
Lanchester, who had never been commercially successful, lived out the rest of his life in straitened circumstances, and it was only through charitable help that he was able to remain in his home. He died at his home, Dyott End, on 8 March 1946.
After the death of the current works manager, Lanchester was promoted in his place. He then designed a new gas engine of greater size and power than any produced by the company before. The engine was a vertical one with horizontal, opposed poppet valves for inlet and exhaust. The engine had a very low compression ratio, but was very economical to run.
In 1890 Lanchester patented a self-starting device for gas engines. He subsequently sold the rights for his invention to the Crossley Gas Engine Company for a handsome sum.
He rented a small workshop next to the Forward Company’s works and used this for experimental work of his own. In this workshop, he produced a small vertical single cylinder gas engine of , running at 600 rpm This was coupled directly to a dynamo, which Lanchester used to light the Company’s office and part of the factory.
Lanchester installed his new petrol engine in a flat-bottomed launch, which the engine drove via a stern paddle wheel. Lanchester built the launch in the garden of his home in Olton, Warwickshire. The boat was launched at Salter’s slipway in Oxford in 1904, and was the first motorboat built in Britain.
Lanchester's car was completed in 1895 and given its first test run in 1896, and proved to be unsatisfactory, being underpowered and having transmission problems. Lanchester designed a new 8 hp (6 kW) 2,895 cc (177 in3) air-cooled engine with two horizontally opposed cylinders, still with two crankshafts. He also re-designed the epicyclic gearbox and combined it with the engine. A driveshaft connected the gearbox to a live axle. The new engine and transmission were fitted to the original 1895 car.
Lanchester had moved to larger workshops in Ladywood Road, Fiveways, Birmingham as work on the car progressed and had also sold his house to help finance the cost of his research. A second car was then built with the same engine and transmission but with Lanchester’s own design of cantilever suspension. This was completed in 1898 and won Gold Medal for its design and performance at the Automobile Exhibition and Trials at Richmond. It became known as the Gold Medal Phaeton.
In 1898, Lanchester designed a water-cooled version of his engine, which was fitted to a boat, driving a propeller. In 1900 the Gold Medal Phaeton was entered for the first Royal Automobile Club 1,000 Miles Trial and completed the course successfully after one mechanical failure on route.
The new car appeared in 1901 and remained in production until 1905, with only minor design modifications. He became a friend of Rudyard Kipling and would send him experimental models to test. In 1905, Lanchester produced a four-cylinder engine, and in 1906 he produced a six-cylinder engine. He was concerned with vibration and so introduced a crankshaft vibration damper and a harmonic balancer, both of which he patented.
The Lanchester Engine Company sold about 350 cars of various designs between 1900 and 1904, when they went bankrupt due to the incompetence of the Board of Directors. It was immediately reformed as The Lanchester Motor Company. Lanchester became disillusioned with the activities of the company’s directors, and in 1910 resigned as general manager, becoming their part-time consultant and technical adviser. His brothers, George and Frank, took over technical and administrative responsibility for the company. In 1909 Lanchester also became technical consultant of the Daimler Motor Company, and subsequently of its parent company Birmingham Small Arms.
During this period he also experimented with fuel injection, turbochargers, added steering wheels in 1907 and invented the accelerator pedal, which previously would not turn off if the operator had problems. He invented (or was the first to use) detachable wire wheels, bearings that were pressure-fed with oil, stamped steel pistons, piston rings, hollow connecting rods, the torsional vibration damper, and the harmonic balancer.
Lanchester was discouraged by the attitude to his aeronautical theory, and concentrated on automobile development for the next ten years. In 1907 he published a two-volume work, Aerial Flight, dealing with the problems of powered flight. In it, he developed a model for the vortices that occur behind wings during flight, which included the first full description of lift and drag His book was not well received in England, but created interest in Germany where the scientist, Ludwig Prandtl mathematically confirmed the correctness of Lanchester’s vortex theory. In his second volume, he turned his attention to aircraft stability, aerodonetics, developing Lanchester's phugoid theory which contained a description of oscillations and stalls. During this work he outlined the basic layout almost all aircraft have used since then. Lanchester’s contribution to aeronautical science was not recognised until the end of his life.
In 1909 Asquith's Royal Advisory Committee on Aeronautics was set up, and Lanchester was appointed a member. Lanchester could see that aircraft would play an increasingly important part in warfare, unlike the military command, which saw warfare as continuing in the same way it had in the past.
Lanchester's Laws were originally applied practically in the United States to study logistics, where they developed into operations research (OR) (operational research in UK usage). Today OR techniques are widely used, perhaps most so in business.
During most of his career he lacked financial backing to be able to develop his ideas and carry out research, as he would have liked. Few scientists have made so many contributions in so many different fields, as Lanchester has done. It is a pity that his name is not better remembered for his many achievements.
An open-air sculpture, the Lanchester Car Monument, in the Bloomsbury, Heartlands, area of Birmingham, designed by Tim Tolkien, is on the site where the first four wheel petrol car was made by Lanchester.
In 1970, several colleges in Coventry merged to form Coventry Lanchester Polytechnic, so named in memory of Frederick Lanchester. This later became Coventry University.